Updated October 2026. Texas Constitution, Texas Department of Insurance rate tables and TREC contract forms checked on October 31, 2026.
No. Texas has no state or local real estate transfer tax. Voters changed the constitution in 2015, so lawmakers can’t add one on a normal home sale. As of October 2026, a Texas seller’s biggest state-set closing cost is often the owner’s title policy: $1,768 on a $300,000 home.
Jump to: 🏛️ Why there’s none · 💵 What you pay instead · 🧾 Title premium math · 📅 Property taxes · 🗺️ Compared · ❓ FAQ
Key takeaways
- No deed tax, no stamps, no county transfer fee on a Texas home sale.
- Article VIII, Section 29 of the Texas Constitution blocks new transfer taxes after January 1, 2016.
- Title insurance premiums are set by the state and dropped 6.2% on March 1, 2026.
- Property taxes are prorated at closing, so the seller still pays for the months they owned the home.
Why doesn’t Texas charge a transfer tax?
Texas never had a statewide deed tax, and in 2015 lawmakers made sure it would stay that way. Senate Joint Resolution 1 added Section 29 to Article VIII of the Texas Constitution. It says that after January 1, 2016, “no law may be enacted that imposes a transfer tax on a transaction that conveys fee simple title to real property.”
Voters adopted it as Proposition 1 at the November 3, 2015 election, according to the Governor’s official canvass proclamation. The same proposition raised the school homestead exemption, which is why many people remember it only for that.
The amendment has limits. It still allows a general business tax and a tax on mineral production. It allows a tax on issuing title insurance. And it lets the state change the rate of a tax that already existed in 2016. None of these is a charge on your deed when you sell.
What closing costs does a Texas seller pay instead?
Texas sellers still have closing costs, just no transfer tax. TREC’s resale contract (form 20-19) lists the seller’s standard expenses in paragraph 12A. Here’s how they line up, with notes on who sets the price.
| Cost | Who pays under the TREC contract | Who sets the price |
|---|---|---|
| Transfer tax | Nobody | None in Texas |
| Owner’s title policy | Seller or buyer (box in 6A) | The state (TDI) |
| Escrow fee | Half each | Each title company |
| Deed | Seller | The attorney |
| Lien releases | Seller | Lender and county clerk |
| Tax certificates | Seller | Providers |
| This year’s property taxes | Split to closing day | Local taxing units |
| New survey, if needed | As the contract says | The surveyor |
| Buyer’s agent pay | Only if agreed | Negotiable |
Deed preparation is legal work. Texas Government Code § 83.001 says only a licensed Texas attorney may be paid to prepare an instrument affecting title, such as a deed. In practice, your title company arranges it and the charge shows up on your settlement statement.
How much is an owner’s title policy in Texas?
The Texas Department of Insurance sets the basic premium, so it doesn’t change from one title company to the next. The current rates took effect March 1, 2026. For a policy from $100,000 to $1 million, the math is short. Take the amount over $100,000. Multiply it by 0.00494. Then add $780.
| Sales price (policy amount) | Math | Basic premium |
|---|---|---|
| $200,000 | $100,000 × 0.00494 + $780 | $1,274 |
| $300,000 | $200,000 × 0.00494 + $780 | $1,768 |
| $400,000 | $300,000 × 0.00494 + $780 | $2,262 |
| $500,000 | $400,000 × 0.00494 + $780 | $2,756 |
Endorsements, such as the “shortages in area” amendment in paragraph 6A(8), cost extra. Who pays the owner’s policy is a checkbox in the contract. By custom the seller usually pays in Texas, but it’s negotiable. The lender’s policy is a buyer cost.
Because the premium is fixed, the part you can shop is the escrow fee and the other title charges. Read what a title company does and who picks the title company before you sign.
How are property taxes handled when you sell in Texas?
This is where many Texas sellers feel the “missing” transfer tax. Paragraph 13 of the TREC contract prorates the current year’s taxes through the closing date. You get charged for the days you owned the home, and the buyer gets that money as a credit.
If the year’s tax bill isn’t out yet, the proration uses an estimate. When the real bill arrives, the contract says buyer and seller adjust it. The proration may also reflect exemptions that are changing, like your homestead exemption ending. Find your account and appraisal details with our Texas property tax ID guide.
How does Texas compare with a state that has a transfer tax?
Take North Carolina. State law there charges an excise tax of $1 for each $500 of the price. The seller pays it before the deed is recorded. On a $300,000 sale that’s $600. In Texas, the same line on your settlement statement is $0.
The bigger number in both states is usually the listing commission, if you pay one. On a $300,000 home, a 3% listing commission would be $9,000. That’s an example only: commissions are negotiable and not set by law. A Beycome Texas listing is $99, with $0 at closing. Run your own net with our cost of selling calculator, and see the line-by-line split in who pays closing costs.
Where does Beycome fit at a Texas closing?
Beycome puts your home on the major home search sites and the MLS, and works with whatever title company you and the buyer pick. Beycome Title also closes in Texas, for a $299 settlement fee. The owner’s policy premium is the state-set rate wherever you close.
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Get up to 2% back at closing
On homes listed by other agents, Beycome credits you up to 2% of the price at closing (1% kept, $1,499 minimum; not on FSBO homes or homes listed by Beycome sellers).
Buy a home →For disclosures, contract forms and which MLS covers your area, read our guide to selling your Texas home without a realtor. 22,000+ homeowners have used Beycome, saving over $225 million in total (Beycome internal data, October 2026). See Texas flat fee MLS packages.
More Texas guides: Texas Seller’s Disclosure Notice: What to Disclose (2026).
Texas transfer tax questions
Does Texas have a real estate transfer tax?
No. Texas has no state or local transfer tax on home sales. The state constitution also bars new ones on normal home sales.
Are there deed stamps or a deed tax in Texas?
No. You pay recording fees for documents such as lien releases, but there is no tax based on the sales price.
What is the biggest closing cost for a Texas seller?
Apart from any commission, it’s often the owner’s title policy, if the seller pays it. That’s $1,768 on a $300,000 sale at 2026 rates.
Who pays for the owner’s title policy in Texas?
The TREC contract has a checkbox for seller or buyer. By custom the seller usually pays, but it’s negotiable.
Are Texas title insurance rates the same everywhere?
Yes. The Texas Department of Insurance sets the basic premium, so it’s the same at every title company. Escrow and other fees vary.
Could Texas add a transfer tax later?
Not on a sale of fee simple title without changing the constitution again. Section 29 still allows some other taxes, such as one on issuing title insurance.
Do Texas sellers pay property taxes at closing?
Yes, through proration. The current year’s taxes are split to the closing date, and the seller credits the buyer for the seller’s share.
Reviewed by Beycome Brokerage Realty LLC, licensed real estate brokerage (TREC #9012216). Licenses: beycome.com/faq/how-to/are-you-a-licensed-broker/.
Prices were read on beycome.com on October 31, 2026 and may change. In Texas, Basic is $99 and Enhanced is $399. Concierge is $1,399 (its list price). “$0 at closing” means no Beycome fee at closing. Taxes, title and attorney charges, other closing costs and any buyer’s agent pay you agree to still apply.
Beycome Title of Texas LLC has a business relationship with Beycome Corp., which has an ownership interest in it. You are free to choose any title company. Its $299 settlement fee was read on beycometitle.com on October 31, 2026; title insurance premiums, recording and other charges are separate.
Title premiums are basic rates from the Texas Department of Insurance schedule effective March 1, 2026, read October 31, 2026, rounded to the nearest dollar as TDI instructs. Endorsements and other title charges are extra.
Commission figures are examples only. Real estate commissions are not set by law or by NAR rules and are fully negotiable. Sellers choose whether to offer any compensation to a buyer’s agent, and how much; since August 17, 2024, those offers can’t be shown on the MLS.
This is general information, not legal or tax advice. Rules change and local practice varies, so check with your title company or a Texas real estate attorney for your situation in Texas.
Sources
- Texas Legislature, S.J.R. 1, 84th Legislature (2015), enrolled text adding Article VIII, Section 29, read October 31, 2026.
- Texas Constitution, Article VIII, read October 31, 2026.
- Office of the Governor, proclamation of the November 3, 2015 constitutional amendment election results, read October 31, 2026.
- Texas Department of Insurance, Texas Title Insurance Basic Premium Rates, effective March 1, 2026, read October 31, 2026.
- Texas Real Estate Commission, One to Four Family Residential Contract (Resale), TREC No. 20-19, paragraphs 6A, 12A and 13, read October 31, 2026.
- Texas Government Code § 83.001: statutes.capitol.texas.gov, read October 31, 2026.
- N.C. Gen. Stat. § 105-228.30, excise tax on conveyances: ncleg.gov, read October 31, 2026.
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